Initial installment of IMF loan : 4.5 billion
Amount spent on 'currency trading' : 3.4 billion
Blackrock getting paid 12 million a year to help 'folks' profit on these 'currency trades'? : absolutely priceless
04.12.2008 11:42
unian.net
repost fom WSJ
Ukraine`s currency spiraled to a new low Wednesday as data showed the country`s population ditching the hryvnia in favor of the dollar faster than ever.
The former Soviet republic is entering a full-blown economic and financial crisis as global demand for steel, its main export, collapses, while Russia continues to threaten it with an ever-higher bill for its gas imports. Confidence in the politically divided government`s crisis plan, which is backed by a $16.5 billion loan from the International Monetary Fund, is fading.
November data released by the National Bank of Ukraine showed it had already hemorrhaged almost 80% of the first part of the emergency IMF loan within a month of receiving it. The National Bank`s gross foreign reserves rose by only $820 million in the month to $32.74 billion, despite its receiving $4.5 billion from the IMF through a hastily arranged stand-by arrangement.
The central bank also said it spent $3.4 billion in foreign-exchange interventions in the course of the month to prop up the currency.
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